FXCM Inc. (NYSE: FXCM), is a leading world-wide provider of foreign exchange trading (currency trading) and related services to retail and institutional customers. FXCM, founded in 1999, was the first forex broker to list on the New York Stock Exchange, making us a market leader in transparency and financial stability.
What We Have to Offer
Clients who trade on FXCM’s award winning Trading Station platform can take advantage of mobile trading, one-click order execution, and trading from real-time charts. However, the heart of our client offering is our No Dealing Desk forex execution. Clients benefit from our large network of forex liquidity providers, which include global banks, financial institutions, prime brokers and other market makers, enabling us to offer competitive spreads on major currency pairs. Serious traders expect their orders to be filled quickly, at the best price available, and nothing less. This is what FXCM delivers. We fill your order at the best available price at the time the No Dealing Desk receives it. This price includes FXCM’s markup which may vary based on account type and liquidity provider.
One of the advantages of our No Dealing Desk model is that we benefit from successful traders given that we make money on a per trade basis. For this reason, FXCM focuses heavily on providing educational services to our clients to help them become better traders. Through DailyFX.com, FXCM offers free news and market research, on-demand educational videos, live instructor sessions, and ongoing trading support by the course instructors.
FXCM is regulated and has offices in a number of global jurisdictions including: the United States, the United Kingdom, Hong Kong, Dubai, Paris, Italy, Germany, Greece, Australia, and Japan. With offices, partners, and affiliates in the major financial centers of the world, we are uniquely positioned to provide exceptional service to forex traders around the world.
FXCM takes regulation and financial transparency very seriously, which also means that we meet strict financial standards, including capital adequacy requirements. As a vocal advocate of foreign exchange regulation and increased investor protection, FXCM’s companies are registered with and regulated by some of the most respected regulatory bodies in the world. The U.S. regulatory framework is widely regarded as one of the best in the world for investor protection.
FXCM has received numerous awards from the forex trading and investment community, including Overall Client Satisfaction from Investment Trends (2012), Best Currency Broker from Shares (2008), Best Retail Foreign Exchange Platform from FX Week (2009 and 2010) and Best Foreign Exchange Specialist from Technical Analysis of Stocks & Commodities (2008).
FXCM’s No Dealing Desk Forex Execution Advantage
FXCM’s No Dealing Desk Forex Execution aims to provide transparent and fair execution. Every trade is executed back to back with one of multiple liquidity providers which complete to provide FXCM with bid and ask prices. Liquidity providers include global banks, financial institutions, prime brokers and other market makers), The best spreads available to FXCM are then streamed to you with a small markup which may vary based on account type and liquidity provider.
The markup applies regardless of whether you make money on the trade, and regardless of how large your profit or loss is. Given that FXCM makes money on a per trade basis, we are motivated to dedicate resources to try to improve client profitability so that you continue to trade. With this execution model, FXCM does not benefit from customer losses.
The role of a No Dealing Desk broker is to act as a true middleman that offers access to the market and who collects a transaction fee for doing so.
When an order fills at a better or more favorable price than the price you request, it is considered a Price Improvement. FXCM offers price improvements on all orders subject to available liquidity. This means that you can potentially make more money if the market gaps or spikes favorably through your limit price. This is especially true in situations where the market is moving fast (e.g., during weekend gaps or around news events).
If you are looking to take advantage of price improvements, FXCM recommends you use limit entry orders to open positions and limit orders to close positions so that you can only receive your requested price or better. Price Improvements are not available for market orders when “Market Range” is set to zero. View FXCM’s Price Improvement Video Series to learn more.
More on FXCM Execution
Due to the average notional trading volume that FXCM generates, FXCM has obtained close relationships with some of the most aggressive liquidity providers. Having multiple liquidity providers is especially important in volatile markets, when one or two liquidity providers may post wide spreads, or simply avoid quoting any price at all. With multiple liquidity providers quoting prices to FXCM, there are competitive spreads, even during market-moving news events.
No Restrictions on Maximum Order Sizes
The FXCM Trading Station allows for order sizes up to 50 million per trade when trading with FXCM’s No Dealing Desk execution option. Traders have the ability to trade incremental sizes (multiple orders of up to 50 million for the same pair). With FXCM’s dealing desk execution, the maximum order size is 2 million per trade with the ability to trade incremental sizes as well.
Place Orders of $10 Million or $50 Million with No Dealing Desk Execution
Clients have the ability to trade large order sizes; however, partial fills can occur. (Please note that partial fills are not a feature of FXCM’s dealing desk execution option.) Clients who want the entirety of their orders filled should use “At Market” price execution. Our liquidity providers, which include global banks, financial institutions, prime brokers and other market makers, stream quotes that are valid for different liquidity amounts. One liquidity provider may provide a price that is good for $2 million and another for $5 million. In order to provide clients with the best available price for large orders, client orders may be executed from prices provided to FXCM by multiple liquidity providers. These prices include our mark-up, which may vary based on account type and liquidity provider.
The execution for all types of large orders is new. When trading with FXCM’s No Dealing Desk execution model, large orders may be partially filled or broken into smaller units; these units may be filled at different price levels. The execution methodology for large orders will fall into four categories: 1) Market Range, 2) At Market, 3) Stop Entry, and 4) Limit Entry. Read below for details on how each type of order is executed.
Clients have a choice on how their market order is executed: “Market Range” or “At Market” Price.
The number to the right of Market Range order type allows you to set the range (in pips) from the current rate that you will accept a fill. Partial fills may occur, and any part of the order that cannot be filled will be cancelled. The order will be filled only at the price or within price ranges specified by the trader. The default setting is Market Range at zero, which indicates that no slippage is permitted (positive or negative).
Q: When I use a Market Range order, how do I know how much of the order has been filled?
A: You can see the number of lots executed by checking the “Open Positions” window, for new positions or changes to existing positions.
“At Market” Price
The entire order is filled at the best prices available at that time. These prices include our mark-up, which may vary based on account type and liquidity provider. At Market order types guarantee execution but do not guarantee price as the order may be filled at multiple prices. Please note the partial fills are not available when trading with FXCM’s dealing desk execution option.
Stop and Limit Entry Orders
These orders are always done at the prices specified by the trader. If only part of the order can be filled at the price, the remainder of the order will continue to appear in the Orders window
Closing a Position with a Market Order
The same options for Market orders to open new positions are available for Close Orders, and execute in the same manner.